NEW DELHI: In what could be the biggest cryptocurrency racket in the capital, Special Cell of Delhi Police has busted the syndicate with the arrest of two key players. The gang allegedly duped around 2,500 people to the tune of at least Rs 100 crore, police said.

The arrested men are Kamal Singh, a DU graduate, and Vijay Kumar, an engineer by profession. Raids are being conducted in Delhi and UP to nab the co-conspirator, who is codenamed Alagh, and his associate. Police raided the gang’s office in Bhikaji Cama Place in south Delhi and seized documents.

The crooks had floated a website “bits2btc.com” and come up with their own currency named HBX and Mcap, an officer said. They were also running another website “gainbitcoin.com” with other associates and selling non-existent cryptocurrencies, police have found.

The gang lured investors by promising them extraordinary returns and payout twice a month. They held meetings in five-star hotels and showed presentations about how their plan would fetch investors maximum returns. The initial pitch to clients would be a ponzi scheme or a multi-level marketing plan.

After conning a considerable number of people, the gang first claimed that the Bitcoins had been hacked and they were trying to retrieve them. Later, they went underground fearing arrest.

A probe was started after a Punjabi Bagh-based businessman approached police after losing coins worth several crores. Soon, other victims also came forward demanding action.

In his police complaint, a victim said, “The men offered attractive investment plans apart from assured income after 15 days. They would compel us to purchase Bitcoin from them in cash and then take it back for investment purpose. They said they would keep it for 18 months in which interest at 12% would be paid every 15 days and the coins would double at the end of one and a half years.”

The interest was supposed to rise by 5% to 18% if an investor brought in another client, the victim claimed.

A special investigation team led by DCP Anyesh Roy and additional DCP (cyber) K P S Malhotra was formed to unearth the module. The team had already been tracking Singh after he figured in another case, but he gave them the slip a few weeks ago and escaped to Dubai. A lookout notice was issued against him and he was held at Delhi airport on a tip-off. Singh then led the team to Kumar.

The accused were produced in the court of chief metropolitan magistrate Deepak Sehrawat and sent to police custody for five days. Police have begun probe into their role in other complaints pertaining to Bitcoin fraud.